Kilton Co. mines and produces aluminum. During 2023, the company explored two new sites and evaluated them for aluminum ore potential. By the year ending December 31, 2023, the sites remained in the evaluation stage. During 2024, evaluation of site Ares was completed, and the site was deemed to have sufficient quantities of ore; consequently, development of the site began. However, site Billow was determined to have ore concentrations too low to be commercially viable. The following is the cost of exploration and evaluation incurred on the (Click the icon to view the costs.) two sites. Required Record the journal entries in 2023 and 2024 relating to the exploration and evaluation costs using the successful efforts method. Assume that Kilton has a policy of capitalizing the costs of exploration and evaluation. With a single entry, prepare the entry to show the spending on exploration and evaluation costs in 2023. (Record debits first, then credits. Explanations are not required. Select "No adjusting entry required" on the first line of the Accounts column if no adjusting entry is needed, and leave all other cells blank.) Accounts Debit Credit With a single entry, prepare the entry to show the spending on exploration and evaluation costs in 2024. Accounts Debit Credit Prepare any adjusting entry required at the end of 2024 under the successful-efforts method. Accounts Debit Credit Data table 2023 Ares $ 1,204,000 S 550,000 Billow Total $ 1,754,000 S 2024 1,560,000 1,625,000 3.185,000 Print Done - X
Kilton Co. mines and produces aluminum. During 2023, the company explored two new sites and evaluated them for aluminum ore potential. By the year ending December 31, 2023, the sites remained in the evaluation stage. During 2024, evaluation of site Ares was completed, and the site was deemed to have sufficient quantities of ore; consequently, development of the site began. However, site Billow was determined to have ore concentrations too low to be commercially viable. The following is the cost of exploration and evaluation incurred on the (Click the icon to view the costs.) two sites. Required Record the journal entries in 2023 and 2024 relating to the exploration and evaluation costs using the successful efforts method. Assume that Kilton has a policy of capitalizing the costs of exploration and evaluation. With a single entry, prepare the entry to show the spending on exploration and evaluation costs in 2023. (Record debits first, then credits. Explanations are not required. Select "No adjusting entry required" on the first line of the Accounts column if no adjusting entry is needed, and leave all other cells blank.) Accounts Debit Credit With a single entry, prepare the entry to show the spending on exploration and evaluation costs in 2024. Accounts Debit Credit Prepare any adjusting entry required at the end of 2024 under the successful-efforts method. Accounts Debit Credit Data table 2023 Ares $ 1,204,000 S 550,000 Billow Total $ 1,754,000 S 2024 1,560,000 1,625,000 3.185,000 Print Done - X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Kilton Co. mines and produces aluminum. During 2023, the company explored two new sites and evaluated them for aluminum ore potential. By the year ending December 31, 2023, the sites remained in the evaluation stage. During 2024, evaluation of site Ares was completed,
and the site was deemed to have sufficient quantities of ore; consequently, development of the site began. However, site Billow was determined to have ore concentrations too low to be commercially viable. The following is the cost of exploration and evaluation incurred on the
(Click the icon to view the costs.)
two sites.
Required
Record the journal entries in 2023 and 2024 relating to the exploration and evaluation costs using the successful efforts method. Assume that Kilton has a policy of capitalizing the costs of exploration and evaluation.
With a single entry, prepare the entry to show the spending on exploration and evaluation costs in 2023. (Record debits first, then credits. Explanations are not required. Select "No adjusting entry required" on the first line of the Accounts column if no adjusting entry is needed,
and leave all other cells blank.)
Accounts
Debit
Credit
With a single entry, prepare the entry to show the spending on exploration and evaluation costs in 2024.
Accounts
Debit
Credit
Prepare any adjusting entry required at the end of 2024 under the successful-efforts method.
Accounts
Debit
Credit
Data table
2023
Ares
$ 1,204,000 S
550,000
Billow
Total
$ 1,754,000 S
2024
1,560,000
1,625,000
3.185,000
Print
Done
- X
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